Current Issue
Back Issues
 Subscribe to BartBlog Feed
How to Read
Members ( need password)
Subscribe to BartCop!
Contact Us
Advertise With Us
Link to Us
Why Donate?
The Forum  -
The Reader
Poster Downloads
Shirts & Shots
BartCop Hotties
More Links
BFEE Scorecard
Perkel's Blog
Power of Nightmares
Clinton Fox Interview
Part 1, Part 2
Money Talks
Cost of Bush's greed
White Rose Society
Project 60
Chinaco Anejo


Search Now:
In Association with

Link Roll
American Politics Journal
Barry Crimmins
Betty Bowers
Consortium News 
Daily Howler
Daily Kos
Democatic Underground 
Disinfotainment Today 
Evil GOP Bastards
Faux News Channel 
Greg Palast
The Hollywood Liberal 
Internet Weekly
Jesus General
Joe Conason 
Josh Marshall
Liberal Oasis
Make Them Accountable 
Mark Morford 
Mike Malloy 
Political Humor -
Political Wire
Randi Rhodes
Rude Pundit 
Smirking Chimp
Take Back the Media
More Links


Locations of visitors to this page

Bond Crisis could sink US Cities
  by John Byrne


A new disaster is looming, according to a prominent market research analyst.

Meredith Whitney, a financial analyst who runs her own consulting firm and correctly predicted
the major debt fallout of Citigroup, warned in a little-reported on interview Sunday that as many as
100 US cities face default on their municipal bonds.

Cities and states issue bonds to pay for public services. The trouble is that municipalities are no longer
collecting enough in taxes to meet their budgetary needs. According to a 60 Minutes report Sunday
 -- which received almost no attention by the popular press -- US cities have spent nearly half a trillion
more than they've collected in taxes, and face pension shortfalls of $1 trillion. Video of the CBS piece follows this article.

"Next to housing this is the single most important issue in the US and certainly the biggest threat
to the US economy," Whitney told a CBS 60 Minutes' interviewer Sunday night.

"There's not a doubt on my mind that you will see a spate of municipal bond defaults. You can see
fifty to a hundred sizeable defaults – more," Whitney added. "This will amount to hundreds of billions
of dollars' worth of defaults."

Whitney became a household name in the investment community after issuing a dire report on Citigroup
in 2007, prior to the global credit crisis. She predicted the bank would face a whopping credit crunch
 -- which it did -- and cut its dividend -- which it also did. The bank was subsequently forced to accept
a massive government bailout.

Citigroup holds the most municipal bond debt out of all the banks in the US.

"Detroit is cutting police, lighting, road repairs and cleaning services affecting as much as 20% of
the population," the Guardian's Elena Moya noted late Monday, writing about the 60 Minutes piece.
"The city, which has been on the skids for almost two decades with the decline of the US auto industry,
does not generate enough wealth to maintain services for its 900,000 inhabitants."

The problem here is very simple: The super-rich got tired of paying taxes so they bribed
the politicians (it used to be just the Republicans) into giving them a special status to pay
less in taxes so there's not enough money to keep the government running.

The article went on to say this:

The New York Times reported on the affluent New York county of Nassau, where a Republican county
executive -- "who won one of the first upsets of the Tea Party era" -- came into office and promptly cut
taxes without trimming public benefits or services.
Nassau's deficit now approaches nearly $350 million.

So, any handjob who says "Let's not fund the government" gets elected and for that I blame the Democrats.
By refusing to list the facts, they've allowed ignorance to rule the day.

Somebody has to pay the bills - why the the super-rich with all their billions?

Our president, to save his political bacon, joined the tax-cutters and now the problem is worse.

Too bad Al Gore chose not to fight for his country in 2000.
Too bad John Kerry chose not to fight for his country in 2004.
Too bad Barack Obama chose not to fight for his country in 2010.

Oh well, at least Obama made Grover Norquist happy.



  Back to

Send e-mail to Bart

Privacy Policy
. .